AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 16
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....ent authority as upheld by Commissioner of Central Excise (Appeals), Mumbai Zone - I in order-in-appeal no. SB/58/Th-I/2010 dated 28th April 2010. 2. The claims pertained to the balance in the CENVAT credit account that remained unutilized upon closure of business and surrender of registration certificate under Central Excise Rules, 2002. According to the appellants herein, the unutilized credit are duties of central excise paid in cash and no different from similar unutilized balance in the 'personal ledger account'. 3. None appeared for the appellants. 4. Learned Authorised Representative places reliance on the decision of the Tribunal in Voltas Ltd v. Commissioner of Central Excise [2018-TIOL-3092-CESTAT-MUM]. A number of other preced....
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.... decision of the Hon'ble High Court of Karnataka in re Slovak India Trading Co Pvt Ltd, cited by appellants, was considered by a Larger Bench of the Hon'ble High Court of Bombay in Gauri Plasticulture (P) Ltd v. Commissioner of Central Excise, Indore et al [2019-TIOL-1248-HC-MUM-CX-LB], arising from a reference owing to disagreement with an earlier decision of the Hon'ble High Court in Commissioner of Central Excise v. Jain Vanguard Polybutylene Ltd [2010-TIOL-911-HC-MUM-CX], and it was held that '30. Prior to such substitution, we have not seen anything in Rule 5 permitting refund of un-utilised credit. We are not dealing with a situation or case of a manufacturer or producer of final products seeks to claim Cenvat Credit of the duty pai....
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....Appeals) took the view that there is no provision in Rule 5 of the Cenvat Credit Rules to grant cash refund. After being approached, what the CESTAT observed is that there is a consistent view taken by the tribunal that such claim is eligible and the assessee can seek refund when it goes out of the Modvat scheme (predecessor of Cenvat) or the unit is closed. This is the reasoning in the tribunal's order and though the appeal of the Revenue before the High Court of Karnataka at Bengaluru raised several grounds and pleas, the High Court referred to the arguments and in para 4 of its order, reproduced Rule 5 of the Cenvat Credit Rules, 2002. In para 5, the reasoning of the High Court of Karnataka reads thus:- "5. There is no express prohibit....
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..... That concession is that the views of the tribunals to the aforesaid effect have not been appealed against by the Revenue/Union of India. Pertinently, there is no concession by the Additional Solicitor General of India on the point of law. Hence, going by this concession on fact, the Special Leave Petition of the Revenue was dismissed. This, by no stretch of imagination, is a confirmation or approval of the view taken by the South Zonal Bench of the Tribunal at Bengaluru or the High Court of Karnataka. 34. Pertinently, when the matter was brought before this court in the case of Jain Vanguard (supra), this court, relying upon the judgment in the case of Slovak India (supra) and the order in the Special Leave Petition, dismissed the Revenue....
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....w and the Revenue could not succeed in having that set aside. It is in these circumstances, the Rajasthan High Court negatived the contention of the Revenue that the tribunal under the jurisdiction of that High Court could have distinguished the orders and judgments of its Benches. That was found to be contrary to the judicial discipline. It is in these circumstances so also when there was a larger Bench view of the tribunal having a binding effect, that the principle of judicial discipline was pressed into service. 36. After the view taken in Steel Strips Ltd. (supra) and which was also fairly brought to our notice, itis evident that this principle has no application to the facts and circumstances before us.' The non-applicability of th....
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....ive of preventing the cascading effects of tax, allows discharge of tax liability from two sources: the cash deposit known as 'account current' and from the credit of the tax already collected from the production chain known as 'CENVAT credit account' with the latter as an option to be used fully or partially in each instance. This is also in pursuance of the constitutional power to tax manufacture and provides the mechanism to restrict the actual payment to the contribution of an assessee to the production chain. At the root is the resting of the tax burden on the ultimate consumer, which could either be the entity that is not a registered assessee or an assessee who is beyond the ambit of Central Excise Act, 1944. We are not here concerne....